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Level 1
March 16, 2023
Question

How to report sale of part of vacant land when the whole land was purchased in the same tax year

  • March 16, 2023
  • 2 replies
  • 10 views

my client has purchased a 2.5 acre vacant non income producing land in Feb 2022 and sold .5 acre (1/2 acre) during the same year 2022.  How do I report this partial sale and the profit?

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2 replies

Just-Lisa-Now-
Intuit Community Champion
March 16, 2023

Divide basis by 5 and use that for the .5 acre sale?

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
BobKamman
Level 15
March 16, 2023

Is he a real estate developer?  Maybe Schedule C.  Not really enough information here.  

Level 8
March 16, 2023

I agree, also...did it gain any equity that would raise the FMV at time of sale/